David Novak: Why Recognition Matters In The Workplace

I spoke to David Novak, the cofounder and former CEO of Yum! Brands, about what most companies don't know about the importance of recognition at work, what forms of recognition Yum! offers its employees, why recognition is universal among all employees globally, why he started OGO and his best advice to you.

Credit: Weber Shandwick

Novak recently stepped down as the Yum! Brands executive chairman. He is a renowned expert on leadership and recognition culture and the author of highly respected and critically acclaimed books, The Education of an Accidental CEO, Taking People With You, as well as his latest one called O Great One! A Little Story About The Awesome Power Of Recognition. Novak also created the largest privately funded leadership service program in middle schools and high schools called Lead2Feed, and is the recipient of the 2015 Horatio Alger Award for his commitment to philanthropy and higher education. Novak is now launching a new consumer brand, OGO (O Great One!), with the mission to inspire people through joyful, personal acts of recognition that deepen relationships.

Dan Schawbel: What do most companies not know about the power of recognition?

David Novak: In simply showing employees how much they are appreciated and recognizing their great work and ideas, leaders can create an energized work environment. For example, a new study conducted by KRC Research for OGO found nearly nine in 10 middle management employees feel unrecognized by their supervisors, while 88% also feel unrecognized by their co-workers. The study also discovered six in 10 employed Americans say they are more motivated by recognition than they are money. The lack of acknowledgment has a direct impact on productivity as well, with 40% of employed Americans saying they’d put more energy into their work if they were recognized more often. By harnessing the power of recognition, organizations can revitalize company culture and connect people back to the company, creating a catalyst for bottom line results and widespread confidence that everyone is important in the organization.

Schawbel: From your background at Yum!, what forms of recognition were offered to employees and what were the results?

Novak:As the CEO of Yum! Brands, I frequently handed out personalized rubber chickens or cheese head awards and would give out a set of wind-up walking teeth to employees who “Walk the Talk.” While the form and delivery of recognition can and should vary, the key is to make it personal to you and the person you’re recognizing (i.e., don’t just give out a generic certificate or plaque). At Yum! it was especially important that I wasn’t the only person who was recognizing others. We built a culture of recognition with each group, leader and brand embracing recognition in their own way around the globe. As a result, we were able to reduce team-member turnover from more than 150% to less than 100% by recognizing people throughout the company.

Schawbel: Have you found that recognition is different among different genders or generations? What are the similarities and differences?

Novak:Recognition is truly universal and I think everyone, everywhere, loves to be recognized for who they are and what they do well. Some interesting findings from our KRC Research study for OGO indicate that:

• Most Americans seek recognition from the people closest to them – their family and their significant other, and 55% agree that parents deserve more recognition. In fact, Americans above the age of 35 are more likely to seek recognition from their children, while roughly a quarter (36%) of Americans between the ages of 18-35 seek more recognition from their parents.

• Both men and women are most likely to call a friend or family member to show recognition, rather than send a text, email or e-card, post on social media or send a handwritten card.

• Across the board, more than half of Americans agree that social media is meaningful and has made it easier to recognize and acknowledge others more often.

Yet whether on an individual or organizational level, recognition should have a place in everyone’s daily routine. Proactively acknowledging those who have a positive impact in both our personal and professional lives truly improves everyone’s quality of life, regardless of gender and generation.

Schawbel: Why did you start OGO, how does it connect to your business background and what are your goals for it moving forward?

Novak:Throughout my career and life, I’ve learned from my experiences as a CEO, husband, father, grandfather and friend, that recognition is too often overlooked as a key success factor in business and beyond. I’m furthering my commitment and passion for recognition and making the transition to founder and CEO of OGO (O Great One!), the first consumer brand focused on the awesome power of recognition. With seven in 10 Americans wishing they were recognized more overall, and 83% saying they could do more to recognize others, we have what I call the “global recognition deficit.” I’m excited to launch OGO and bring the power of recognition to the forefront by providing resources that make it easy for people to express recognition in personal, meaningful ways. Ultimately we hope to create a global movement that motivates people to use recognition habitually and inspire others to do great things.

Schawbel: What are our top three pieces of career advice?

Novak:

1. Recognition is a privilege of leadership. Great leaders celebrate other people's ideas even more than their own, and do it in a way that is real and from the heart. Giving recognition is a privilege and leaders are in the unique position to recognize and elevate others. When exercised in the right way, giving recognition feeds people’s souls and makes them feel great about themselves and the work they do.

2. Show that you care, and listen. Before expecting anything from others, show people that you care about them by hearing and acknowledging what they have to say. Great ideas can come from anywhere and shared experiences can make it fun for everyone.

3. Recognition translates into results. Recognize others in relation to the important goals and objectives of your organization. Leaders should recognize both the good, earned behavior, as well as counterproductive behavior. By addressing both when he or she sees it, leaders can create a change agent to encourage others and drive results.

I'm a partner and research director at Future Workplace, an executive development firm dedicated to rethinking and reimagining the workplace. I also wrote the New York Times bestselling book, Promote Yourself, and Me 2.0. In 2012, I was named to the Forbes Magazine 30 Under...